Property solicitor

[MummytoGeorgie]

I'm on maternity and I miss my work!

I'm a property solicitor, if anyone has any questions I would be more than happy to give some free advice to do with conveyancing i.e moving home, enquiries, searches, title documentation etc (no landlord tenant as that's not my area of expertise).

TIA

@Newhousehope hello! I hope you're well...

Haha no problem at all more than happy to help.

So... the property you are selling has covenants (legally binding obligations) attached to it. I assume one of the covenants will state that you cannot build or develop without the prior written consent of (person/company).

Your solicitor may have missed it or may be looking to go back to them without obtaining your instructions if in your best interests.

Firstly, you'd want to see who imposed the covenant and when.. If the covenants are contained within a deed/conveyance (part of the title deeds) which is pushing 100 years old I wouldn't no way get my client to obtain an indemnity at their expense. I'd argue that the person who had the benefit of the covenant would most likely be deceased.. if it was a company (not a person) then I'd check on companies house whether the company was still in existence.. if it wasn't then I'd argue that point too. It really does depend on indemnity .. usually the seller obtains it at their expense but given that it's 15+ years old or if the company/person wasn't around anymore .. I would advise the buyers solicitors that if the buyer felt there were any risk then they would have to obtain indemnity at their own cost.

Check with your solicitor though if they meant to miss it because you don't want it to be a mistake and they were supposed to refer
It to you and it delays things down the line.

Xx

@Eastie77 hello, I hope you are well :-)

Your buyer is being unreasonable.

Re indemnity you can't get indemnity for a future risk (being asked to remove the floor) or if the people that can enforce the breach (ie the HA) are aware of it (current wooden floors) as it Invalidates the policy so I would say indemnity isn't an option.

I would call her bluff and advise that you will remove the floor prior to completion and have carpets fitted yourself (call her bluff) but no reduction will be offered does she want to proceed with the floors as they are or with carpets. Bet you hands down she'll proceed as it is because she's just trying her luck!

Cheek of it!!

Hope you manage to get your desired outcome.

Xxx

@Bluebellbike you will only be able to reclaim if you sell within 3 years xx

@flyingfreehold2021 ah you're welcome :-) it's so hot it's unbearable for me let alone George ha ! Fans on all the time at home whatever room we are in but can't be helped the temp in the bedroom is 27 degrees so he sleeps in his nappy with the fan on us both :/ can't wait until it's cooler such a worry.

Hope you've had some progress this week!

Xx

@lucysnowe2 yes, maybe give them a deadline of two weeks. They should be able to get an appointment for mediation if anything (saves time for court) to try and work out distribution !!

Hope you sort it xx

@MummytoGeorgie

I wonder if you could help with a query about a house we've seen. It has planning permission for a new dwelling on the large plot which is subject to an overage clause.

How common are these clauses and should we not touch with a bargepole? We maybe interested in property as is with land but assume if we wanted to sell in future it could be an issue that would limit buyers and delay sale, etc. Wondering if we could ask for overage clause to be cancelled and add clause to deeds to say unable to build a new dwelling on the land?

Thanks for any advice

x

Amazing, thank you so much @MummytoGeorgie

@MummytoGeorgie, Hello, me again! Sorry! Hope the heat isn't getting to your little one!
Looks like we are on final enquiry (fingers crossed). My Buyer's Solicitor's keep asking us to contact the Land Registry to obtain a "plan" which is referred to in the Lease as "attached plan". I have already sent this across - it was scanned with the Lease, plan was the final page and maybe they didn't see it. I then extracted it for them separately and my Solicitors passed it on again. They have come back with the same query. My Solicitor doesn't know why they have rasied again, and said he will speak to the Buyer's Solicitors direct to find out what is happening. I am just wondering whether we are missing something really obvious, and why they keep asking for the plan when they already have it?

Me again! This is so useful!!

Our buyer has pulled out (again) and it looks like our vendor might also remarket their house.

We've paid our solicitor for searches (not a problem with this at all) but will we be expected to pay anything else?

We've agreed to "pay on completion" so does that mean if we start again with a new buyer/seller then the only thing we'd have to do is pay for new searches?

@coronacockdown

Hey, hope you're well!

Sometimes properties are sold subject to overage clauses (uplift or claw back provisions).

I'm assuming you understand it, in simple terms if planning permission is obtained you will be entitled to share in the uplift in value to the property to whom ever has the benefit of the clause.

Things you need to be aware of are:

1. How long are the provisions in place for? Usually they can be imposed up to 25 years but this is so long arguably they should only apply where there is a realistic chance of obtaining the permissions in 5-10 years! Is it the seller that is imposing the clause or did the seller take it on with their purchase?
2. You need to find out what percentage they want if you were to develop.
3. What would trigger the payment and how would it be calculated.
4. Usually the clause will apply EACH TIME you develop within the time period not just for the current planning permission there is so check that.
5. You should ask for specifics about what would happen in the event of the person benefitting from the clause was to become deceased in the time period as this from

Experience has caused my clients issues.

1. You need to be aware of stamp duty. If for example you were to developer additional stamp may need to be paid as stamp is paid on the value of the property.

Overage provisions can make negotiations of the contract and transfer more complex which can also result in you paying extra legal fees and also take longer to get to completion. There have been many disputes in the courts and it could be worth considering if there is any way of proceeding I.e paying a slighter higher price for the property instead for example...

I don't see overage clauses often but when there is land involved with a property it is more common..

You could request that the clause be cancelled and a clause added to the deeds (covenant) to state no building on the land etc as you suggest but then if the clause was in effect for another 20 years for example then you might leave after 5 years and the person benefitting from the clause may have missed out on any further development by any future buyer so it's unlikely to be agreed.

IF the clause was implemented by a previous owner (not the seller) then there's not much to negotiate. IF the clause is being implemented by the current seller then there's definitely chance for negotiation.

When you come to sell the property it may make the pool of potential buyers smaller but then again it could get snapped up quickly too by a developer you just don't know...are you looking to develop it yourself? Do you have overage agreement?

Xx

@areyouhavingagiraffe Hello! Haha that's ok :-)

George is ok he's a bit hot and stuffy but I'm glad he's 12 weeks today and not newborn or if panic more. Nappy days in front of the fan is what he likes haha!

So..it sounds to me that the plan attached to the lease you have a copy of but it is not registered at the land registry with the lease...

If you have the plan but it's not registered at the LR with the lease then your solicitors will need to do this. To avoid delay, as long as they hold the original they can provide an undertaking (legal promise) to the buyers solicitors to provide this on completion so that the buyer can register the lease plan at the same time as their ownership.

This is all I can think of that would be the problem! Perhaps your solicitor needs to pick up the phone to solve the problem. Back and forward emails over days for a simple task just delays things unnecessarily!

At least it's the final enquiry :-)))

Xxx

@Andthenanothercupoftea hello, hope you're ok! So sorry to hear that your buyer pulled out and your vendor is remarketing!! So frustrating especially with the stamp duty changes coming up!

You won't get the search fees back as it's a third party disbursement and will need to pay for new searches on a new property when one is secured.

Regarding other fees this all depends on your solicitor and the terms and conditions/client care letter that you would have signed at the outset..

Some solicitors work on a no move no fee basis

Some will invoice for the work carried out thus far

Some won't charge if you reuse them for a new purchase.

Have a look at your emails see if you can find the terms and conditions to see what their policy is xx hope you find a new buyer and purchase soon! Xx

@MummytoGeorgie

Thank you so much - lots of questions to ponder over. the overage clause has been done by current seller & would benefit them and their descendants. It's for 40 years!!

xx

@coronacockdown 40 years is taking the p*! It really is. Wouldn't go over 15 on a residential property - very unreasonable.

At least with the current seller there may be room for negotiation!

Xx

Thanks @MummytoGeorgie. Silly question, but how/why do think it's not registered? They keep saying "the lease refers to an attached plan", please provide plan by contacting Land Registry. We have provided the plan.....Would they have obtained the Lease from Land Registry and know it's not registered? I wish they would just say that if that's the case. My solicitor said he doesn't know why they keep saying "please provide plan", but he did say to me he would call them and find out, instead of email, as you suggest :-)
Also I have checked the lease plan with the Title plan at the Land Registry and it's highlighting the same demise etc.
Good suggestion re: the undertaking.

@areyouhavingagiraffe there's no knowing why it may not be registered maybe it wasn't done upon registration of the lease ... the title plan is separate to the lease plan but the lease plan has to be contained within the official copy lease when downloaded from the land registry... if your solicitor has sent them the official copy lease but the plan is not contained within the official copy and you've just sent the lease plan after separately then this is prob why they keep requesting it.

The only way they can use the lease plan to be registered is if you have the original copy or a certified copy.

If you only have a copy then it cannot be used for registration, you need one of the above.

If no original or certified copy of the lease plan is available then the sellers solicitors would most likely ask for an indemnity policy (costing up to £200 approx) for the missing lease plan.

Xx

@MummytoGeorgie wow thank you! We’ve found out a week before exchange that the probate house at the top of the chain has a shared appreciation mortgage attached to it. Any idea how long that would take to process please? X

@Gettingonabitnow hey, it depends on the lender really and how quick their turnaround time is... due to covid etc they're all being slower than usual anyhow!

Id expect it to be not too dissimilar to a normal mortgage as all the lender would need is the valuation and to provide redemption statement.

Xx

@MummytoGeorgie thank you so much honestly! X

Sorry @MummytoGeorgie, can I just check, presumably we don't need to involve freeholder to register this plan, if it is not registered? I don't want more delays from the HA. Hopefully we can use the route your suggested, just between me and my buyer. We not completing until 26th July, but hoping to exchange by end of June to allow me to mobilise for the move

@Gettingonabitnow you are welcome xxx

@areyouhavingagiraffe no need to have to get in touch with the HA about it. Xx

@MummytoGeorgie thanks so much. I sent my solicitor a scan of my lease, but didn't appreciate he would send an official copy. Anyway good news is that I have the official/ original copy of the plan. So looks like we could go down the undertaking route.

@MummytoGeorgie, sorry to message again ha ha! Can I just say that you were absolutely correct about the lease plan! So, my Solicitor said he would look into it, but they are busy dealing with the urgent transactions at the moment etc etc. I decided that I would download a copy of the lease from the Land Registry, and it does not contain the Lease Plan! My Solicitor does not yet know this by the way.....

Good news is that I defo have the original, you can see the legal embossing. Out of interest how long would it take to register the Lease Plan at the Land Registry? We are not completing until 26th July (the vendors I am buying from cannot move until that date) so I am wondering whether we just get it registered ourselves, would we have enough time to do this? (I have asked for Exchange by the end of this month)

Alternatively with the undertaking option, would I send the original plan to the Buyer's Solicitor's pre-exchange or on exchange? I am a little nervous about my original getting lost in the post, am wondering whether this is risky even with special / recorded delivery. I may have to hand deliver it, which means a 2 hour drive.

By the way I have told Buyers' Solicitors that I want to exchange by 30th June; Buyer's Solicitor says that this date is achievable, so do I take that to mean they believe Enquiries can be addressed? This is the last one!

Just trying to work out whether this is now a show-stopper, but hopefully it would appear not to be given we have the original lease plan

@areyouhavingagiraffe hey, hope you're having a good day!

The LR are experiencing delays I had one client who called me the other day on my mobile saying that their property still isn't registered (post completion) and it completed over 6 months ago!!

I wouldn't try and register it I would definitely get your solicitor to give an undertaking that it would be supplied on completion to the vendors solicitors for them to register it and send it By registered post. They will need it prior to exchange to give the undertaking not completion.

Before sending it you could take it to a local solicitor to get it copied and certified and email that to your solicitor in the meantime.

They can rely on a full certified copy in the event that it did go missing, just to cover yourself!

Not a show stopper don't worry :-)

Xx